Safilo Group SpA (SFL) AI Stock Analysis

• Market Cap: €627.16M
• Dividend Yield: N/A
• Average Volume (3M): 1.55M
• Price to Earnings (P/E): 13.4
• Beta (1Y): 1.44
• Revenue Growth: -0.76%
• EPS Growth: 2341.30%
• Country: IT
• Employees: 3,352
• Sector: Consumer Cyclical
• Sector Strength: 79
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.10
• Shares Outstanding: 414,239,320
• 10 Day Avg. Volume: 1,825,554
• 30 Day Avg. Volume: 1,548,878
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €1.46
• Price Target Upside: -4.58% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 66 Neutral
• Price Target: €1.50 ▼(-1.96% Downside)

Safilo Group SpA's stock score is primarily driven by its strong financial performance, particularly in profitability and cash flow generation. Technical analysis suggests strong momentum, though caution is advised due to overbought RSI levels. The valuation is reasonable, but no dividend yield may deter some investors. The lack of earnings call and corporate events data limits additional insights.

Positive Factors

Cash Flow

Cash management track record improves with management delivering underlying free cash flow of €30m in FY24, similar to FY23.

EBITDA Margin

EBITDA margin increased by 20 basis points to 7.9% in 3Q24, driven by continued gross margin expansion.

Profitability

Management has convincingly delivered on profitability and cash management.

Negative Factors

Market Visibility

Visibility remains low in Safilo's main region, North America that drives approximately 43% of company's sales, in context of macro and consumer spending uncertainty.

Sales Decline

Top-line momentum remained muted with a 3.4% constant-currency sales decline, driven by deteriorating conditions in Europe and China.

Underperformance

The sun business in Europe and sports brands in North America continued to underperform due to poor weather conditions and challenging market environments.

Safilo Group SpA Business Overview & Revenue Model

Company Description

Safilo Group SpA is a leading Italian eyewear manufacturer and designer, specializing in the production of high-quality eyewear frames and sunglasses. Established in 1934, the company operates in the fashion and luxury sectors, partnering with prestigious brands to create exclusive eyewear collections. Safilo's portfolio includes its own brand as well as licensed brands, catering to a diverse global market that values craftsmanship and innovative design.

How the Company Makes Money

Safilo Group generates revenue primarily through the sale of eyewear products, which includes both prescription glasses and sunglasses. The company operates a dual revenue model: it sells eyewear under its own brand as well as through licensing agreements with other renowned brands. Key revenue streams include direct sales to retail partners, e-commerce sales, and wholesale distribution. Additionally, Safilo benefits from strategic partnerships with luxury fashion houses, allowing it to expand its product offerings and reach in the high-end eyewear market. The company's focus on innovation, quality, and brand collaboration contributes significantly to its overall earnings.

Safilo Group SpA Financial Statement Overview

Summary

Safilo Group SpA has demonstrated improvements in profitability and cash flow generation, despite revenue declines. The balance sheet remains robust with manageable debt levels and improved equity ratios. Continued focus on operational efficiency and cost management could further bolster financial performance amidst industry challenges.

Income Statement

The company's revenue has been volatile, showing a decline in recent years, with a 3.3% decrease from 2022 to 2023 and a further 3.1% decrease from 2023 to 2024. Despite this, the gross profit margin in 2024 improved to 56.6% from 58.7% in 2023, indicating better cost management. The net profit margin improved significantly to 2.24% in 2024 from a negative 2.4% in 2023, showing a return to profitability. EBIT and EBITDA margins also improved, signaling operational efficiency gains.

Balance Sheet

The company's balance sheet is stable, with a debt-to-equity ratio of 0.31 in 2024, indicating moderate leverage. The equity ratio improved to 49.0% in 2024, suggesting a healthy balance between debt and equity financing. Return on equity increased to 5.4% in 2024, indicating better shareholder value creation compared to previous years.

Cash Flow

The company has shown strong cash flow performance with a 87.4% growth in free cash flow from 2023 to 2024. The operating cash flow to net income ratio was 3.42 in 2024, indicating strong cash generation relative to net income. The free cash flow to net income ratio was 2.90, showing efficient cash conversion from earnings.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	993.22M	1.02B	1.08B	969.58M	780.30M
Gross Profit	561.73M	601.74M	537.23M	445.64M	305.25M
EBITDA	90.49M	56.35M	129.10M	109.37M	-16.27M
Net Income	22.30M	-24.65M	54.16M	21.27M	-69.66M
Balance Sheet
Total Assets	842.34M	855.46M	960.27M	937.77M	913.92M
Cash, Cash Equivalents and Short-Term Investments	47.42M	74.90M	77.71M	99.00M	88.97M
Total Debt	130.10M	157.60M	191.11M	192.96M	311.04M
Total Liabilities	414.88M	459.68M	521.35M	571.68M	727.55M
Stockholders Equity	413.07M	379.20M	409.92M	326.74M	147.32M
Cash Flow
Free Cash Flow	64.65M	34.50M	-6.71M	-2.66M	-23.38M
Operating Cash Flow	76.22M	47.71M	9.16M	17.30M	885.00K
Investing Cash Flow	-48.87M	-8.65M	-15.67M	-9.76M	-133.20M
Financing Cash Flow	-54.83M	-40.47M	-16.81M	2.07M	168.89M

Safilo Group SpA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.53
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:SFL, the sentiment is Positive. The current price of 1.53 is above the 20-day moving average (MA) of 1.36, above the 50-day MA of 1.15, and above the 200-day MA of 0.96, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 79.67 is Negative, neither overbought nor oversold. The STOCH value of 89.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:SFL.

Safilo Group SpA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SFL	66 Neutral	€627.16M	13.45	11.48%	―	-0.76%	2341.30%
Sector *	61 Neutral	$17.78B	13.97	-5.49%	3.03%	1.50%	-15.71%
0QII	―	€13.01B	21.21	18.89%	―	―	―
0P52	―	€792.60M	111.21	-20.18%	―	―	―
8BU	―	€6.73B	56.65	25.65%	―	―	―
2PI	―	€5.93B	11.91	8.98%	―	―	―
ICOS	63 Neutral	€1.14B	24.06		1.63%	9.01%	5.14%

Safilo Group SpA Corporate Events

Safilo Group Advances Share Purchase Program, Boosting Market Position

Safilo Group S.p.A. announced the execution of its share purchase program, acquiring 575,000 ordinary shares between August 4 and August 8, 2025, at an average price of 1.254419 euros per share. This acquisition increases Safilo’s total holdings to approximately 3.54% of its outstanding shares, reflecting the company’s strategic efforts to consolidate its market position and potentially enhance shareholder value.

Safilo Group Releases Half-Year Financial Report for 2025

Safilo Group S.p.A. has published its half-year financial report for June 30, 2025, which is now accessible to the public. This announcement reflects the company’s commitment to transparency and provides stakeholders with insights into its financial health and operational progress. The report’s availability may influence investor confidence and market positioning, reinforcing Safilo’s role as a key player in the eyewear industry.

Safilo Group Advances Share Purchase Program

Safilo Group S.p.A. announced the execution of its share purchase program, acquiring 563,782 shares between July 28 and August 1, 2025, as part of a broader initiative started in June 2025. This move increases Safilo’s total holdings to approximately 3.40% of its outstanding shares, reflecting the company’s strategic efforts to consolidate its market position and enhance shareholder value.

Safilo Group Reports Record Results for First Half of 2025

Safilo Group S.p.A. reported record financial results for the first half of 2025, driven by resilient sales and strong cash generation despite a challenging market environment. The company achieved a 2.3% increase in net sales at constant exchange rates, with significant margin expansion and debt reduction. Strategic initiatives, including the renewal of the Carolina Herrera license and the addition of Victoria Beckham to its portfolio, strengthened its market positioning and commitment to value creation for shareholders.

Safilo Group Expands Shareholding with Recent Purchase Program

Safilo Group S.p.A. has executed a share purchase program, acquiring 575,000 ordinary shares between July 21 and July 25, 2025, as part of a broader initiative started in June 2025. This move increases the company’s total holdings to approximately 3.27% of its outstanding shares, potentially strengthening its market position and signaling confidence in its future prospects.

Safilo Group Completes Strategic Share Purchase Program

Safilo Group S.p.A. has announced the completion of a share purchase program, acquiring 493,060 ordinary shares between July 7 and July 11, 2025, as part of a broader initiative authorized by its shareholders. This strategic move increases Safilo’s total holdings to approximately 2.99% of its outstanding shares, potentially strengthening its market position and indicating confidence in its future performance.

Safilo Group Advances Share Purchase Program

Safilo Group S.p.A. has announced the progress of its share purchase program, which was initiated on June 25, 2025. As of July 4, 2025, the company has acquired a total of 897,767 ordinary shares, representing approximately 2.87% of the outstanding shares. This strategic move is part of the company’s efforts to manage its capital structure and potentially enhance shareholder value.

Safilo Group Launches Strategic Share Purchase Program

Safilo Group S.p.A. has initiated a share purchase program, authorized by its shareholders, to strategically manage financial resources and create a stock warehouse for future investment opportunities. The program, managed by Kepler Cheuvreux, will run from June 25, 2025, to December 31, 2025, and aims to purchase up to 15 million shares, representing 3.6% of shares in circulation, with a maximum countervalue of 18 million Euros. This move is expected to enhance Safilo’s operational flexibility and strengthen its market position.

Safilo Group and Carolina Herrera Renew Global Eyewear License Agreement

Safilo Group and Carolina Herrera have renewed their global license agreement for Carolina Herrera branded eyewear collections until December 2031. This renewal underscores the successful collaboration since 2022, aiming to expand into high-potential markets and enhance brand identity through innovative and modern eyewear collections. The partnership is expected to strengthen Safilo’s market position and contribute significantly to Carolina Herrera’s strategic product portfolio.

Safilo Group Sells Lenti Srl to Kering Eyewear

Safilo Group has announced the sale of its subsidiary Lenti Srl to Kering Eyewear. This strategic move is part of Safilo’s ongoing efforts to streamline its operations and focus on its core business areas. The sale is expected to impact Safilo’s market positioning by allowing it to concentrate resources on its primary eyewear products and services, potentially enhancing its competitive edge in the global market.

Safilo Group Extends Supply Agreement with Kering Eyewear Until 2029

Safilo Group has announced the early renewal of its supply agreement with Kering Eyewear, extending the partnership until 2029. This renewal underscores Safilo’s strategic positioning in the eyewear market, ensuring continued collaboration with a key partner and potentially enhancing its market presence and operational stability.

Safilo Group Publishes Shareholders’ Meeting Minutes

Safilo Group S.p.A. has published the minutes of its Ordinary Shareholders’ Meeting held on April 24, 2025. This publication is part of the company’s commitment to transparency and governance, potentially impacting its stakeholders by providing insights into its operational decisions and strategic direction.